A rig contractor has now been hired for Shell PLC's (LSE:SHEL) exploration well in the North Sea, the project’s small-cap partner Deltic Energy PLC (AIM:DELT) has confirmed.
Deltic, in a statement, told investors that a rig contract has been signed for the drilling of the Pensacola exploration well which is expected to kick off in September.
Pensacola will be drilled by the Maersk Resilient, a high-efficiency jack-up rig, which has been under contract to Shell since the start of June, Deltic said, and it remains on schedule to get underway in September following the completion of seabed operations which will start in late July.
AIM-quoted Deltic described the confirmation of the drill contract as “a significant step forward for Deltic and a key milestone” in advancing what it described as an exciting prospect.
Deltic noted that Pensacola has the potential to unlock a significant new source of gas to the UK and as such has been highly anticipated by the industry.
"The signing of the rig contract coupled with the firming up of the drilling schedule is exciting news for Deltic as we move further down the runway towards the drilling of the Pensacola gas prospect,” said chief executive Graham Swindells.
“Pensacola is an increasingly valuable asset in the current energy environment and confirmation that the JV has now secured a high-quality drilling rig with an experienced team for the well is another key milestone as our planning continues to progress towards the drilling of this high-impact prospect."